Ghana's economic development since the mid 1990s is one of the greatest success stories of sub-Saharan Africa. The country is currently on a stable path to development. From over 50 % in 1992, the poverty rate has fallen to below 30 % (2006). However, the big successes have been accompanied by a growing regional disparity of incomes, wealth and opportunities. Especially in northern Ghana, rural areas have been left largely untouched by the economic growth and poverty reduction. The development of the financial sector has mainly focused on the top end of the market, while large sections of the population still have no access to financial services.

For the Ghanaian Government, economic growth driven by the private sector is the main key to reducing poverty. The Government’s private sector development strategies concentrate on creating a favourable investment climate and on strengthening the competitiveness of Ghana’s businesses. They are also aimed at broadening access to financial services.

Besides severe infrastructural weaknesses (energy, transport and telecommunications), the development of Ghana’s private sector is particularly hindered by:

• inadequate level of organisation and efficiency amongst stakeholders, promotional institutions and service providers that aim to develop the economy
• cumbersome public administration structures which are highly bureaucratic and susceptible to corruption
• insufficiently developed financial systems, and lack of access to financial services for micro, small and medium-sized enterprises (MSMEs).

GIZ's activities in this area are helping to remedy the structural weaknesses and build capacities to promote MSME development. This is done in close collaboration with the partners at national level (business associations and ministries) and by providing advice to decentralised bodies (district assemblies). The partners learn to recognise and remove rules and regulations that obstruct investment; by doing so, they improve the climate for business and investment, and open up access to financial services.